“It would be easy to get over-excited about July sales when looking just at the numbers,” said Gaoaketse. “However, the context of July last year is critical to appreciating the slow and steady growth being experienced in the market.”According to the automotive business council Naamsa, new vehicle sales grew 30.9% to 43,593 year-on-year, the fourth consecutive month of sales growth since the market’s slow April performance.
WesBank said it expects further interest rate hikes for the remainder of the year, providing an opportunity for the market to conclude deals before these expected increases and capitalise on savings to be made in the early part of the contract. Deals financed with a balloon payment have also increased substantially, indicating a need to lower the monthly instalment to suit household budgets.”
“It is intended to assist with cash flow management, but it requires discipline to save. Customers should be honest with themselves with regards to their personal financial management when deciding on whether a balloon payment is suited to them or not.”